Shilling rocking past Ksh.108 as Dollar demand rises

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The Kenya shilling has sunk to a new low having breached the Ksh.108 mark against the US dollar on Wednesday.

The Central Bank of Kenya (CBK) quoted the shilling at Ksh.108.12 against the US dollar at Wednesday’s close with the local unit having taken a depreciating curve from a high of Ksh.100.21 at the beginning of February.

The recent trend in depreciation is against the CBK’s efforts to mop up the local unit to rein in further depreciation having tapped Ksh.22.6 billion last week. In its weekly bulletin, the reserve bank attributed the weakening to an unmatched demand for dollars in the interbank market.

Analysts however hold mixed views to the observed depreciation which has raised uncertainty in the forex exchange market.

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